Towne East Square's owners are repurchasing a piece of nearby ground that was sold to the city several years ago because of construction on Kellogg.
The Wichita City Council will consider Tuesday a recommendation by city staff to sell to Simon Property Group 2.91 acres at the northwest corner of Kellogg and Rock Road.
Indianapolis-based Simon will pay the city a little more than $2.6 million for the ground, according to city documents.
Part of the ground — where a La Quinta hotel once sat — was acquired by the city in 2006.
According to City Council meeting minutes from March 2, 2006, the council voted 7-0 to purchase the land and the hotel building for $4.45 million. The minutes said funding for the acquisition was to come from the East Kellogg project funds. The city also paid more than $400,000 for removal of asbestos from the hotel building, according to city documents.
John Philbrick, the city's real estate administrator, said the land that Simon is looking to repurchase also includes the site where the Old Chicago restaurant sat. The restaurant was razed for Kellogg expansion, and a new Old Chicago restaurant was built nearby.
The land — comprising 126,548 square feet — was put on the market last year. According to city documents, the land was listed for $20 a square foot. Five offers were received, with the lowest at $15 a square foot and the highest at $21 a square foot.
Simon Property, because it had previously owned the land, had the right of first refusal on the sale. After best and final offers were presented, Simon was approached and agreed to acquire it for $21 a square foot, city documents said.
Reached late Friday, a Simon spokesman was unable to offer any details on the purchase.